Some people who should declare bankruptcy avoid doing so because of bankruptcy stigma. Bankruptcy can be associated with failing or shame, and in turn, one may choose to be in debt, dealing with endless calls from creditors and potentially facing lawsuits.
This guide highlights what you should know about bankruptcy’s stigma:
The biases against bankruptcy have largely faded
The social stigma surrounding bankruptcy has largely faded. Because of the financial turbulence of the last few decades, many people have filed for bankruptcy through no fault of their own. Medical debt, job losses and environmental disasters have all caused people to realize that the inability to pay one’s bills is very common.
You don’t need to feel guilty about your debts
Guilt is another aspect of bankruptcy’s stigma – and it can keep people from filing. However, bankruptcy gives you a way to be proactive about your debt, which is the responsible thing to do.
The benefits of bankruptcy far outweigh the negatives
Focusing on the benefits you will enjoy after declaring bankruptcy is wise. Bankruptcy is a valuable protection that offers you a fresh financial start and a second chance. It saves you from lawsuits and much stress and anxiety over your debts. If the system didn’t exist, responsible people would be stuck in debt for life.
Bankruptcy stigma is a real issue that many people face. This guide can help you deal with it efficiently. It will also help to obtain more information about bankruptcy to make informed decisions.